Not exact matches
We'll put put specific numbers on that bluebird view by creating a simple model that involves moving a
few decimal points: Let's say that FAANG Inc's share price is $ 24 (based on $ 24 trillion
valuation) and that it earns 80
cents (that's the $ 80 billion, many decimal points to the left), so it's selling at the FAANGs combined PE
of 30.
Meanwhile, Hilton's devaluation a
few years back resulted in their points becoming no better than a footnote in travel loyalty programs, unless you enjoy chasing
valuations of less than half a
cent per point.
Hyatt is one
of the best hotel transfer partners with a
valuation of about 1.4
cents per point, but they have relatively
few properties.
In practice these are fairly blunt tools that tell me «1
cent a point for American miles is a really good deal» but that I'm not going to spend 2
cents unless there's a very specific scenario — like a
few points at the margin to top off an account for an award I've put on hold — where it makes sense (and in that scenario, my
valuation of each point is higher since they're helping me to save with a real redemption).